World Bank, Mozambique sign 450-mln-USD financing agreements

MAPUTO, June 10 (Xinhua) -- The Mozambican government has signed five financing agreements with the World Bank worth a total of 450 million U.S. dollars to enhance social protection, economic resilience and sustainable development.

The agreements, signed on Tuesday through the Ministry of Finance in Maputo, will support programs in social protection and economic resilience, job skills and economic transformation, emergency response for a sustainable rural economy, and water safety for rural areas and small cities, according to officials.

Finance Minister Carla Louveira said the funding is aligned with the World Bank's new Country Partnership Framework and will be accompanied by reforms to ensure effective use of resources in line with Mozambique's priorities of inclusive growth and poverty reduction.

"One of the main areas the World Bank will address relates to the recent macroeconomic shocks Mozambique has faced, including climate-related shocks earlier this year and the economic impact of the conflict in the Middle East," Louveira said after the signing ceremony.

She added that the financing package was designed outside traditional cooperation frameworks, allowing for accelerated disbursement to support economic recovery and productive activities.

The agreements were signed with World Bank Managing Director Paschal Donohoe, who highlighted the shared commitment of both sides to advancing development outcomes for the Mozambican people.